### Compute optimal order quantities for bar stock-sheet stock

Assignment Help Operation Management
##### Reference no: EM131269005

Inventory Management : Danny Steel Inc., fabricates various products from two basic inputs, bar stock and sheet stock. Bar stock is used at a steady rate of 1,000 units per year and costs \$200 per bar. Sheet stock is used at a rate of 500 units per year and cost \$150 per sheet. The company uses a 20 percent annual holding cost rate, and the fixed cost to place an order is \$50, of which \$10 is the cost of placing the purchase order and \$40 is the fixed cost of a truck delivery. The variable (i.e. per unit charge) trucking cost is included in the unit price. The plant runs 365 days per year.

a) Compute the optimal order quantities for bar stock and sheet stock.

b) Compute the annual cost (holding plus order) for bar stock and sheet stock in two different situations: I . No chance to share trucks ; II . S heet stock orders always overlap with bar stock orders and there is no trucking cost for sheet stock. (Note: do not consider the unit cost in your calculations).

c) Suppose it is possible to share trucks for bar stock and sheet stock. The manager changed the order interval for bar stock and sheet stock to 14 days and 28 days respectively. Compute the annual cost (holding plus order) based on the new order intervals.

#### Mapping the process of innovation

Mapping the Process of Innovation 1.Pick an industry (e.g. groceries, airlines, publishing, etc.) and explain the innovative process that must take place for successful integr

What is a good thesis statement for a paper on the benefits of sustainability in the fast fashion industry? Write an outline for a paper on sustainability in the fast fashion

#### Write comprehensive job description

You are the hiring manager at a major home improvement retailer, Home Improvement Center, and need to fill a position for an exempt-status night shift supervisor. The applican

#### Identify with target record-retention practices

What were the legal issues in this case? What did the appeals court decide? What are the obligations of employers regarding the retention of records related to recruiting? Wha

#### Perform a pest analysis on coach company

Is an American fashion company based in New York. The company sell accessories and gifts for women and men, including handbags, men's bags, women's and some leather goods, foo

#### Use the process detailed in the ivy case system

Use the process detailed in the Ivy Case System to answer this question. You have opened a consulting firm. A potential client meets with you about their products. First, they

#### Matrix management

Matrix Management: Not a Structure, a Frame of Mind Read the article: "Matrix Management: Not a Structure, a Frame of Mind" beginning on page 383. Do you agree with the author

#### What is the bottleneck capacity in candidates per hour

Job candidates are leaving an office every 50 minutes. Each candidate goes through three activities during the office visit: verification, written test, and interview. Verific